Small modular reactors have the potential to produce reliable electricity in Canada, supporting the country’s transition to net-zero emissions and creating a new nuclear industry that could be valued at over CAD150bn ($116bn) by 2040, an action plan released by the government says.

The plan includes 50 recommendations for the development and deployment of SMRs, a sector in which Canada “is poised to be a global leader”. It says the government intends to anchor jobs, intellectual property and supply chains in Canada.

The government also said it will work with partners from the US, the European Union and the UK to explore the advancement of SMR technology.

“Markets around the globe are signalling a need for smaller, simpler, and cheaper nuclear energy,” the plan says. “At the same time, international experts are telling us that new nuclear energy, together with the full range of low-carbon technologies, are needed to combat global climate change and meet federal, provincial and territorial emissions targets for 2030 and 2050.”